Facebook's Hedge Fund Problem

NEW YORK ( TheStreet) -- Facebook is in desperate need of a hedge fund spokesperson as the company's shares remain mired well below a $100 billion valuation given to the social network in its May 2012 initial public offering.

For the ordinary investor, or even a burned buyer of Facebook's IPO, the seeming lack of interest by big money investors is troubling. Buying among hedge funds in upcoming quarterly Securities and Exchange Commission filings or in large individual holdings, however, could be a sign Wall Street's most influential investors finally see value in the billion-member social network's shares.

Unlike competitors in Silicon Valley who've suffered falling share prices, Facebook has almost no vocal Wall Street investors supporting the company's current stock valuation. Currently, Facebook remains relatively un-owned by the hedge fund community, even as the technology and internet sectors become a favorite of hedge fund activists and value investors.

Meanwhile, as venture capital backers and the company's employees exit Facebook shares through lockup expirations, there is little indication Wall Street mega-funds will emerge as a buyer. In contrast, AIG and General Motors and bailed out banks became hedge fund favorites as the U.S. Treasury began selling down its crisis time investments.

In recent years, turnarounds at Yahoo! and Netflix have been cheered on by hedgies as influential as Daniel Loeb-run Third Point and Carl Icahn of Icahn Associates .

Third Point was the key Yahoo! investor in pressing for CEO Marissa Mayer's hiring and the company's recent acquisition of Tumblr, both of which have been received well by markets. Icahn, meanwhile, has cast crucial support of Netflix as the streaming movie service diversifies its content offerings and grows subscribers.

Loeb and Icahn's work in the tech sector is matched across the hedge fund industry.

David Einhorn of Greenlight Capital Management recently succeeded in spurring Apple to issue $17 billion in debt to fund $50 billion in additional dividends and share repurchases. The iPhone maker is among Greenlight's largest holdings.

As investors await a clear bottoming in Apple shares, Jeffrey Gundlach of Doubline Capital has become a buyer of Apple's shares at about $425 apiece, TheStreet first reported .

Some struggling recently IPO'ed internet and tech players have seen their shares surge in 2013 as hedge funds finally enter stocks at low prices.

Tiger Global Management, for instance, is benefiting from a more than doubling in Groupon shares since becoming one of the daily deal site's largest shareholders in late November. Tiger Global is particularly interested in the potential of Groupon Goods, some sources say. The company also is showing signs of controlling its once-spiraling costs after founder Andrew Mason was ousted as CEO earlier in 2013.